Dude, you have to take action. You MAY be legally responsible for the payments that were made to you directly (unless the terms of the announcement made it clear that you were simply passing the money along to Kaotic). But even if you are legally responsible for some or all of the payments you received, you can still cross-complain against Kaotic to get reimbursed. Kaotic is liable to you for any failure on its part to deliver what it promised to you. So make an appointment with an attorney who specializes in business law or consumer law. If you can't afford an attorney, go to small claims court and work together with the small claims advisor. He will advise you about how to straighten this out.